Reading 34: Understanding the Cash Flow Statement - LOS h ～ activities, financing, accounts, company, affect

mayanfang1

Q1. How does decreasing accounts payable turnover affect a company’s cash flow from financing activities and is this source of cash sustainable?

          Financing cash flow           Sustainable source

 

A) Increase                                        No

B) No impact                                     Yes

C) No impact                                     No

Q2. Consider the following:

Statement #1:    One approach to presenting a common-size cash flow statement is to express each inflow of cash as a percentage of total cash inflows and each outflow of cash as a percentage of total cash outflows.

Statement #2:    Expressing each line item of the cash flow statement as a percentage of revenue is useful in forecasting future cash flows.

Which of these statements regarding a common-size cash flow statement is (are) CORRECT?

A)   Both statements are correct.

B)   Only statement #1 is correct.

C)   Only statement #2 is correct.

风吹竹面

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kenshinpet

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hnzjbenson

 t

chrisyikhei

yes

yruanca

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mikeyanghan

 c

seraphiris0116

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echopapa

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tongfeibw08

  thank you very muc